Ark Invest's most prominent holding is Tesla (TSLA) -), Elon Musk's electric vehicle company. The investment firm has been exceptionally bullish on Tesla for a long time now, notably releasing a prediction in April that Tesla will be trading at $2,000 per share by 2027 — it is currently trading at around $270 per share.
The firm seems more than eager to position itself to benefit from this coming boost — Tesla is the top holding in at least two of Ark's funds and is prominent in others. Combined, Ark owns more than $1 billion in the company.
Related: Elon Musk approves of Cathie Wood's bold bull thesis for Tesla
Despite Ark's bold bull thesis, which revolves mainly around the high revenue potential of autonomous taxis, a sector it expects Tesla to easily dominate in, Ark is not opposed to trimming its top holding every now and then.
Ark Innovation sold off 51,155 shares of Tesla on Wednesday, a chunk worth around $13.8 million based on Tesla's closing price of $271.30 per share.
Still, the ETF's holding in Tesla remains its largest by a wide margin at $877.4 million, weighted at 11.38% of the fund. Ark Innovation's second-largest holding is in Roku (ROKU) -), where its 7.9 million shares are worth $623.4 million, making up 8.08% of the fund.
“We think that the robotaxi opportunity globally will deliver $8 to $10 trillion in revenue by 2030 and is one of the most important investment opportunities of our lifetimes,” Wood said in April. “Autonomous driving is going to take away the human error, we believe.”
Related: Here's why the Tesla bears are very wrong, according to Wedbush analyst Dan Ives
Musk chimed in on robotaxis and the growth potential of Tesla during the company's second-quarter earnings call in July, saying that Tesla's robotaxis will have "quasi-infinite demand."
The tech magnate has also directly agreed with Wood's Tesla thesis, that the company should trade like a tech giant rather than an automaker, based on its positioning with artificial intelligence and the coming potential of autonomous taxis.
Tesla is currently facing a series of ongoing probes and investigations into the safety of its self-driving and Autopilot technology.
"I have very high confidence in the long-term value of Tesla, I see it, I really see a path to a 10x, maybe call it a 5x increase in the value of the company," Musk said in July. "Maybe a 10x."
If you work for Tesla, contact Ian by email ian.krietzberg@thearenagroup.net or Signal 732-804-1223
